Grand County, CO – First Time Home Buyer
Are you looking to purchase your first home? Our Grand County, CO first time home buyer loan programs might be the perfect solution to help you obtain the financing you need to buy the home you desire. We provide excellent home financing options, and encourage you to compare our offered loan terms to other mortgage lenders.
Grand County, Colorado First Time Home Buyer Loan Programs
- FHA Loans – May consider FHA loans to be the best first time home buyer loan . They are the easiest to qualify for and offer leniency in the qualifications. FHA loans also offer a low down payment requirement of only 3.5% and FHA allows down payment assistance programs.
- Conventional Loans – Conventional mortgages are best for those who can afford to pay a larger down payment. They also usually offer better loan terms than FHA loans for those who have good or excellent credit. They are also making a comeback with low down payment options, which currently are as low as 3-5% down.
- USDA Loans – USDA loans are an excellent option for those who want to purchase a home in a rural area. They are available for very low income, low income, and moderate income borrowers. USDA loans do not require any down payment and closing costs can be financed into the loan. This means you can essentially buy a home with no money out of pocket!
- VA Loans – Active duty military members and veterans can apply for a VA loan which allows you to buy your first home without any down payment. These loans are not available to the general public, but exclusively to military/veterans. VA loans also offer special low rates and loan terms.
- Jumbo Loans – Any loan that does not meet the conforming or FHA loan limits is a jumbo loan. Grand County FHA loan limits are as follows: Single unit: $333,500. Two units: $426,950. Three units: $516,050. Four units: $641,350. For conforming loans (which apply to conventional and VA loans) the maximum loan limits are: Single unit: $417,000. Two units: $533,850. Three units: $645,300. Four units: $801,950. If you want to buy a more expensive home, and have the income to qualify, we provide what are known as jumbo loans up to $2,000,000.
The above 5 types of loans are the main first time home buyer options that exist. We can help you determine which loan is the right fit for you based on your particular needs and eligibility.
Grand County – Down Payment Assistance Programs
There are a two different down payment assistance programs available in Grand County. This includes the Grand County Housing Authority GCHA program, and the other is the Colorado statewide CHAC program.
GCHA – Grand County Housing Authority
Unlike the majority of other down payment assistance programs, the GCHA program does NOT require you to be low income or a first time home buyer. It is available for any type of homebuyer to apply for. As long as you meet the following requirements, you may be able to receive assistance through this program:
- The first step is get prequalified for a first time home buyer loan. We can prequalify you, simply send us a request through the form on this page, or here.
- Only owner occupied properties are allowed. It must be your primary residence (no investment properties are allowed).
- Contribute 1% or $1,000 (whichever is greater) of the purchase price to be used towards the down payment.
- You must work 32 hours a week or more.
- You do NOT have to be a first time home buyer, but you can not currently own any real estate.
- Complete the Grand County home buyer education class.
There are also income and asset limitations, which are not specific on the Grand County web page covering this program. If you would like our help determining your eligibility, we would be happy to assist you. You may also call the Grand County Housing Authority at 970-725-3070.
Colorado Housing Assistance Program
For more assistance, potential buyers can look to the CHAC. Their organization provides flexible loans with low interest to low- to moderate-income families. It is processed as a second mortgage and is repaid on a monthly basis, however, the start date for repayment can vary. Borrowers are also expected to be able to pay $1,000 of their own money to cover general mortgage fees.
To begin the application process, borrowers must first attend a CHAC approved home buyer class. This is required and non-negotiable. Following this, an application for assistance can then be filled out. Successful applicants are expected to adhere to certain guidelines.
- The borrower cannot have owned a property in the past three years.
- The property must be inhabited as a primary residence. Should it not be used this way, the loan will be due back in full plus any accumulated interest immediately.
- Full disclosure of assets and income of every person that will be living in the home has to be given.
- At closing, no money back is provided.
- Should the borrower pay off the entire first mortgage, the remaining amount on the CHAC loan will be due.
You can learn more about the CHAC down payment assistance program here.
Frequently Asked Questions About Buying Your First Home
How much do I need for a down payment?
It depends on the type of loan you want. USDA and VA loans often will not require any down payment. FHA loans require a 3.5% down payment, which if you get down payment assistance, only .5% is required. Conventional loans typically require either 3% or 5%.
How do I know if I am ready and prepared to own a home?
It is critical to consider the often unexpected expenses of buying a home. This includes repairs, maintenance, and of course furnishing the home, monthly utilities, and all other expenses that are associated with homeownership. A common mistake is to just look at the difference in rent to your total mortgage payment. Almost every year, you can expect to have to pay for various upkeep to keep the property functional. This can include anything from repairing a hot water heater that broke, to landscaping, and various maintenance.
Something else financial consultants advise is that you have at least 3 months of reserves. This means that you could afford to make your new mortgage payment for at least 3 months in the event that you lose a job or have some other unforeseen circumstance that the savings would be needed for. This is not a requirement for most home loans, but it is good advice to consider.
How much can I afford to borrow?
The amount that you can borrow depends on your particular loan type and income. There are maximum loan limits which are set at the county level. Conforming loan limits are the maximum lending amount allowed for conventional mortgages. FHA loans have their own loan limits. You can search the maximum loan amount for your county for each particular loan type by entering your zip code (or any zip code for the county you want to buy a home in). This will display the maximum amount available for all loan types. This is not necessarily how much you can borrow though, but the max amount in your location. Your personal limits will be based upon your income and how much debt you have. For instance, with most loans, you can not have a mortgage payment and debts exceed 43% of your income.
Can I buy a home without a real estate agent?
It depends on your state and the type of loan program. For some states, you must use an agent. In other states, you are not required to use a real estate agent for many loan program, such as conventional mortgages. However, some loan types require that you use a real estate agent regardless of your location, such as USDA loans.
Can I buy a home if I owe tax debt?
For government-backed loans, such as FHA, VA, and USDA loans, you can buy a home with tax debt as long as you have made a payment plan with the IRS and are not behind on the payments. Any federal debt must be in good standing in order to get a government-based mortgage. If your tax debts have moved into the status of a tax lien, this will prevent you from getting a home loan until it is resolved.
Can I buy a home if I have student loans?
As long as you are not delinquent on the student loan payments and the monthly payments do not cause excessive debt-to-income ratios, you can still get a mortgage.
Can I buy a home without my spouse?
A common question is if you can buy a house without your wife or husband. The short answer is yes. There are numerous reasons someone may want to exclude their spouse from a mortgage application, such as lower credit, lack of job history or income, or one spouse having excessive debt that could prevent an approval. You may be able to qualify and get a home loan without your spouse.
Can I buy a home after foreclosure?
Most loan programs will require you to wait 3 years before you can buy again after a foreclosure. There are some instances that you might be able to get an approval in as little as 12 months. This includes the FHA extenuating circumstances program (more commonly known as the “FHA back to work program”). If you lost your job due to a job loss or some other event out of your control, you might be able to purchase a home with a FHA loan after only 1 year.
I do not have much credit, can I still get approved?
We require a 620 FICO score for all of our loan programs. You may find another mortgage lender who can help you if you have poor credit. We do not offer any bad credit mortgage programs.
Have more questions about buying your first home? View our list which covers even more commonly asked questions about buying a home. Or you can give us a call at 1-800-731-3560.